Obtaining a HELOC using an LLC

[Regen Place]

Is it possible to get a HELOC or Business Line of Credit by using an LLC as collateral? My wife and I are partners in the LLC that has 3 paid off homes on 10 acres in Bozeman, MT. The property is valued at $650k and two of the three homes are currently rented ($1150 and $1000 per month). The LLC will be showing rental profits for 2017 but have not shown previous profits due to us recently acquiring the property and forming the LLC. My question is “would a lender be willing to issue a line of credit based on the value of the property by itself or do we need to show 2 yrs of rental income within the LLC to get a line of credit?” Thank you for any advice or insights pertaining to my question.

[Andrew Postell]

@Regen Place it is possible to find a Line of Credit for this type of business but it might be easier to find a lender who would just grant a Line of Credit on the real estate itself. I'm not very versed with Montana lending but my advice would be to reach out to smaller banks and ask for a Line of Credit (and not a HELOC) and once they get you to the right department ask the bank their preference....company or real estate. And see what they say. It might take a while to find one....I would normally steer you to the state forum here at BP for some local advice but I'm not sure how active the Montana forum will be...might be a good idea to post there anyway. Good luck!